Please note that the Dragonfly, being powered solely by the USB port of the computer, is VERY sensitive to the quality of the USB power being supplied. I used my Dragonfly on a laptop with a completely dead battery. While in use, the wall AC-charger had to be plugged in or the computer wouldn't even boot.

The system sounded SO BAD with the Dragonfly, that I replaced speakers (twice) before noticing that the Dragonfly was the problem. I probably could have solved the problem with an external USB "powered hub," but I sold the Dragonfly before thinking of that.

Bottom line is - For the Dragonfly to perform at its best, the computer MUST supply sufficient voltage and a sufficiently clean DC voltage via its USB port. If not, then the Dragonfly sounds absolutely atrocious! If you have ANY doubt about the quality of the power to your computer's USB ports, then buy a good quality powered USB hub and be prepared to be AMAZED at the sound quality difference!

Stoner Acoustics, a bare-bones start-up from Malaysia, has a few very low cost DragonFly-like DACs that seem to use high-quality parts (such as ESS Sabre DAC, etc.). A decent review is on head-fi.org here:

I've recently purchased the v1.2 and noted severe clipping/distortion when plugged into my Macbook Pro USB and run directly to my Sony MDR-7506s. (Most apparent with lossless files at mid-hi volume; listening to James Blake was a nightmare). Thought the 7506 would be low enough impedance (63 ohms), but was surprised and disappointed to find out the v1.2 wouldn't drive them. Ran the v1.2 through my old Tandberg TR2045 amp's headphone jack and through my NHT SuperOnes and they sounded fantastic.

Hoping it's something I'm doing wrong and not a shortcoming of the Dragonfly v1.2, but I'm not sure what else it may be.